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Research and development expenses for the fourth quarter and year ended December 31, 2012 were $1.3 million and $5.4 million, respectively. This compares to the fourth quarter and year ended December 31, 2011 of $2.0 million and $5.7 million, respectively.

Selling, general and administrative (SG&A) expenses for the fourth quarter and year ended December 31, 2012 were $4.0 million and $14.6 million, respectively. This compares to SG&A expenses in the fourth quarter and year ended December 31, 2011 of $3.5 million and $14.5 million, respectively. Additionally, $0.6 million was expensed for amortization of intangible assets during the fourth quarter of 2012 and the fourth quarter of 2011. For the full year, $2.3 million was expensed for amortization of intangible assets for 2012 and 2011.

Cash and Liquidity

Net cash used in operating activities for the fourth quarter and year ended December 31, 2012 was $4.6 million and $20.2 million, respectively. On December 31, 2012, Plug Power had cash and cash equivalents of $9.4 million and net working capital of $6.9 million. This compares to $13.9 million and $22.5 million, respectively, at December 31, 2011.

The accompanying financial information and reconciliation tables provide additional information on the Company's year-to-date performance as it relates to the full year 2012 milestones previously announced.

Conference Call

Plug Power has scheduled a conference call today at 10:00 am ET to review the Company's results for the 2012 fourth quarter and year-end results. Interested parties are invited to listen to the conference call by calling 877.407.8291.

The webcast can be accessed by going directly to the Plug Power Web site (
www.plugpower.com ) and selecting the conference call link on the home page. A playback of the call will be available online for a period following the call.

About Plug Power Inc.

The architects of modern fuel cell technology, Plug Power revolutionized the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders forged the path for Plug Power's key accounts, including Walmart, Sysco and Coca-Cola. With more than 3,000 GenDrive units shipped to material handling customers, accumulating over 8 million hours of runtime, Plug Power manufactures tomorrow's incumbent power solutions today. Additional information about Plug Power is available at
www.plugpower.com .

Plug Power Inc. Safe Harbor Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to Plug Power's expected use of the net proceeds from the offering. These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, any of which are difficult to predict, are beyond Plug Power's control and that may cause Plug Power's actual results to differ materially from the expectations in Plug Power's forward-looking statements including statements regarding the risk that we may not have sufficient cash to fund our operations to profitability and that we may be required to seek strategic alternatives, including but not limited to a potential business combination or a sale of the company, or reduce and/or cease our operations, other risks and uncertainties related to satisfaction of the closing conditions of the offering, the estimated proceeds from the offering and the anticipated use of proceeds from the offering, the risk that unit orders will not ship, be installed and/or convert to revenue, in whole or in part; the cost and timing of developing Plug Power's products and its ability to raise the necessary capital to fund such development costs; the ability to achieve the forecasted gross margin on the sale of Plug Power's products; the actual net cash used for operating expenses may exceed the projected net cash for operating expenses; the cost and availability of fuel and fueling infrastructures for Plug Power's products; market acceptance of Plug Power's GenDrive system; Plug Power's ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of components and parts for Plug Power's products; Plug Power's ability to develop commercially viable products; Plug Power's ability to reduce product and manufacturing costs; Plug Power's ability to successfully expand its product lines; Plug Power's ability to improve system reliability for GenDrive; competitive factors, such as price competition and competition from other traditional and alternative energy companies; Plug Power's ability to manufacture products on a large-scale commercial basis; Plug Power's ability to protect its intellectual property; the cost of complying with current and future governmental regulations; and other risks and uncertainties discussed in the reports Plug Power files from time to time with the SEC. Plug Power does not intend to, and undertakes no duty to update any forward-looking statements as a result of new information or future events.

Plug Power Inc.

Financial Highlights

Balance Sheets (Dollars in thousands):

(unaudited)

December 31, 2012

December 31, 2011

Assets

Current assets:

Cash and cash equivalents

$ 9,380

$ 13,857

Accounts receivable

4,022

13,389

Inventory

8,550

10,355

Prepaid expenses and other current assets

1,988

1,894

Total current assets

23,940

39,495

Property, plant and equipment, net

6,708

8,687

Leased property under capital lease, net

2,970

--

Note receivable

571

--

Intangible assets, net

5,271

7,474

Total assets

$ 39,460

$ 55,656

Liabilities and Stockholders' Equity

Current liabilities:

Borrowings under line of credit

$ 3,381

$ 5,405

Accounts payable

3,558

4,669

Accrued expenses

3,828

3,173

Product warranty reserve

2,672

1,211

Deferred revenue

2,950

2,505

Obligations under capital lease

650

--

Other current liabilities

--

80

Total current liabilities

17,039

17,043

Obligations under capital leases

1,305

--

Deferred revenue

4,362

3,037

Common stock warrant liability

476

5,321

Other liabilities

1,248

1,219

Total liabilities

24,430

26,620

Stockholders' equity

15,030

29,036

Total liabilities and stockholders' equity

$ 39,460

$ 55,656

Statements of Operations (Dollars in thousands):

Three months ended December 31,

Twelve months ended December 31,

(unaudited)

2012

2011

2012

2011

Revenue

Product and service revenue

$ 5,696

$ 11,296

$ 24,407

$ 23,223

Research and development contract revenue

226

544

1,701

3,886

Licensed technology revenue

--

27

--

517

Total revenue

5,922

11,867

26,108

27,626

Cost of revenue and expenses

Cost of product and service revenue

9,106

11,482

37,657

30,670

Cost of research and development contract revenue

415

726

2,805

6,232

Research and development expense

1,345

2,008

5,434

5,656

Selling, general and administrative expense

4,020

3,495

14,577

14,546

Gain on sale of leased assets

--

--

--

(673)

Amortization of intangible assets

580

568

2,306

2,322

Operating loss

(9,544)

(6,412)

(36,671)

(31,127)

Interest and other income and net realized losses from available-for-sale securities

55

27

226

248

Change in fair value of warrant liability

1,119

(758)

4,845

3,447

Interest and other expense and foreign currency gain (loss)

(104)

(25)

(262)

(22)

Net loss

$ (8,474)

$ (7,168)

$ (31,862)

$ (27,454)

Loss per share: Basic and diluted

$ (0.22)

$ (0.32)

$ (0.93)

$ (1.46)

Weighted average number of common shares outstanding

38,156,591

22,743,388

34,376,427

18,778,066

Plug Power Inc.

Reconciliation of Non-GAAP financial measures

Reconciliation of Reported Net loss to EBITDAS

Three months ended December 31,

Twelve months ended December 31,

2012

2011

2012

2011

Operating loss, as reported

$ (9,544)

$ (6,412)

$ (36,671)

$ (31,127)

Stock based compensation

501

(150)

2,002

1,452

Depreciation and amortization

1,190

1,100

4,376

4,455

EBITDAS

$ (7,853)

$ (5,462)

$ (30,293)

$ (25,220)

EBITDAS is defined as operating income (loss), as adjusted for depreciation and amortization expense and charges for equity compensation. EBITDAS is a non-GAAP measure of our financial performance and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP, or as an alternative to cash flows from operating activities as a measure of our liquidity.

Gross margin percentage is a financial ratio used to indicate the relationship between cost of product and service revenue and product and service revenue. We use the term adjusted gross margin percentage to refer to product and service revenue, as adjusted, less total cost of product and service revenue as a percentage of product and service revenue, as adjusted. This non-GAAP financial measure allows management to view gross margin percentage as if revenue had been fully recognized upon invoicing. We believe that these non-GAAP measures, when taken together with our GAAP financial measures, allow us and our investors to better evaluate short-term and long-term profitability trends.

While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These measures are not prepared in accordance with GAAP and may not be directly comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation.

Plug Power Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Twelve months ended December 31,

2012

2011

Cash Flows From Operating Activities:

Net loss

$ (31,862)

$ (27,454)

Adjustments to reconcile net loss to net cash used in operating activities: